NASA's MAVEN project contract to Lockheed Martin exceeds $300M for spacecraft development and operations
Contract Overview
Contract Amount: $300,982,194 ($301.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2009-04-02
End Date: 2026-09-30
Contract Duration: 6,390 days
Daily Burn Rate: $47.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 50
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: RISK REDUCTION AND PHASE B EFFORT IN SUPPORT OF THE MARS ATMOSPHERIC AND VOLATILE EVOLUATION (MAVEN) PROJECT. THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO SUPPORT THE MAVEN PROJECT TO DEFINE AND COMPLETE THE DEFINITION OF THE PRELIMINARY DESIGN, AND THE PLANS FOR DEVELOPMENT, MANUFACTURE, TEST, VERIFICATION AND OPERATION OF A FLIGHT SYSTEM, WHICH CONSISTS OF THE INTEGRATED SPACECRAFT AND SCIENCE PAYLOADS IN ACCORDANCE WITH THE STATEMENT OF WORK.
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $301.0 million to LOCKHEED MARTIN CORP for work described as: RISK REDUCTION AND PHASE B EFFORT IN SUPPORT OF THE MARS ATMOSPHERIC AND VOLATILE EVOLUATION (MAVEN) PROJECT. THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO SUPPORT THE MAVEN PROJECT TO DEFINE AND COMPLETE THE DEFINITION OF THE PRELIMINARY DESIGN, AND THE PLANS FOR DEVE… Key points: 1. Contract focuses on defining and completing preliminary design and development plans for the MAVEN flight system. 2. Significant investment in a long-term project with a substantial duration, indicating complex and ongoing needs. 3. The contract type (Cost Plus Award Fee) suggests performance incentives tied to project milestones. 4. The contractor, Lockheed Martin, has a strong track record in aerospace and defense projects. 5. This contract represents a major component of NASA's Mars exploration strategy. 6. Geographic impact is concentrated in Colorado, where the contractor is based.
Value Assessment
Rating: good
The contract value of over $300 million for the MAVEN project is substantial, reflecting the complexity of developing and operating a Mars spacecraft. Benchmarking against similar large-scale space exploration missions, this figure appears within a reasonable range given the technological challenges and long-term nature of the endeavor. The Cost Plus Award Fee structure allows for flexibility while incentivizing contractor performance, which can be a value-for-money approach for highly technical and uncertain projects. However, detailed cost breakdowns and comparisons to industry standards for specific components would be needed for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The number of bidders is not specified, but the full and open nature suggests a robust competition that likely drove down costs compared to a sole-source award. This approach is generally favored for significant procurements to maximize taxpayer benefit.
Taxpayer Impact: A full and open competition for a contract of this magnitude is beneficial for taxpayers as it increases the likelihood of securing competitive pricing and innovative solutions, ultimately stretching federal research and development dollars further.
Public Impact
The primary beneficiaries are NASA and the scientific community, gaining critical data about the Martian atmosphere. Services delivered include the design, development, testing, verification, and operation of the MAVEN spacecraft. The geographic impact is primarily at the contractor's facilities in Colorado, with broader implications for scientific research globally. Workforce implications include highly skilled engineering, scientific, and technical jobs within Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in long-term, complex R&D projects.
- Reliance on a single contractor for a critical, multi-year mission.
- Schedule delays could impact NASA's broader Mars exploration timeline and scientific objectives.
Positive Signals
- Contractor's established expertise in spacecraft development and mission operations.
- Incentive structure (Cost Plus Award Fee) aims to drive performance and efficiency.
- Full and open competition suggests a competitive environment that should yield good value.
- Long contract duration allows for sustained focus and development of specialized capabilities.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of the aerospace industry. This sector is characterized by high barriers to entry, significant R&D investment, and long development cycles. Spending in this area is critical for national scientific advancement and technological leadership. Comparable spending benchmarks would involve other major space exploration missions, such as those for lunar exploration or other planetary probes, which often run into hundreds of millions or billions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Given the specialized nature and scale of the MAVEN project, it is unlikely that small businesses would be the primary contractors. However, Lockheed Martin, as the prime contractor, would likely engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem within the aerospace supply chain.
Oversight & Accountability
Oversight for this contract is primarily managed by the National Aeronautics and Space Administration (NASA). NASA employs program managers, contracting officers, and technical representatives to monitor progress, review deliverables, and ensure compliance with the contract terms and statement of work. The Cost Plus Award Fee structure itself includes performance metrics that are evaluated to determine award fees, providing a direct oversight mechanism. Transparency is generally maintained through NASA's public reporting on its missions and contract awards, though detailed internal cost and performance data may be proprietary.
Related Government Programs
- NASA Mars Exploration Program
- Planetary Science Division Projects
- Spacecraft Development Contracts
- Aerospace Manufacturing
- Guided Missile and Space Vehicle Manufacturing
Risk Flags
- Long-term project duration increases risk of cost escalation and schedule slippage.
- Complexity of space mission development inherently carries technical and operational risks.
- Reliance on a single large contractor for critical mission components.
Tags
nasa, lockheed-martin-corp, colorado, definitive-contract, large-contract, full-and-open-competition, cost-plus-award-fee, space-vehicle-manufacturing, mars-exploration, r&d, aerospace
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $301.0 million to LOCKHEED MARTIN CORP. RISK REDUCTION AND PHASE B EFFORT IN SUPPORT OF THE MARS ATMOSPHERIC AND VOLATILE EVOLUATION (MAVEN) PROJECT. THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO SUPPORT THE MAVEN PROJECT TO DEFINE AND COMPLETE THE DEFINITION OF THE PRELIMINARY DESIGN, AND THE PLANS FOR DEVELOPMENT, MANUFACTURE, TEST, VERIFICATION AND OPERATION OF A FLIGHT SYSTEM, WHICH CONSISTS OF THE INTEGRATED SPACECRAFT AND SCIENCE PAYLOADS IN ACCORDANCE WITH THE STATEMENT OF WORK.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $301.0 million.
What is the period of performance?
Start: 2009-04-02. End: 2026-09-30.
What is Lockheed Martin's track record with NASA on similar large-scale space missions?
Lockheed Martin has a long and extensive history of working with NASA on numerous complex space missions. They have been instrumental in developing spacecraft for various NASA programs, including the Orion spacecraft for the Artemis program, the James Webb Space Telescope's instruments, and numerous satellite and probe missions. Their experience spans design, manufacturing, integration, and testing of sophisticated space hardware. This deep experience provides NASA with confidence in Lockheed Martin's ability to execute challenging projects like MAVEN, although it also means the agency is heavily reliant on established, large contractors for critical endeavors.
How does the $300M+ contract value compare to other Mars missions or similar planetary science projects?
The $300 million+ contract value for the MAVEN project is substantial but falls within the expected range for complex, multi-year planetary science missions. For context, NASA's Curiosity rover mission cost approximately $2.5 billion, and the Perseverance rover mission cost around $2.7 billion. Smaller missions or instrument development projects can range from tens to hundreds of millions. MAVEN, focused on atmospheric studies, represents a significant but not unprecedented investment. The value reflects the costs associated with designing, building, launching, and operating a spacecraft capable of surviving and functioning in the harsh Martian environment for an extended period.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for a project like MAVEN?
The primary risks with a CPAF contract for a project like MAVEN revolve around cost control and the potential for scope creep. While CPAF incentivizes performance through award fees, the 'cost plus' aspect means the government pays the contractor's allowable costs plus a fee. If costs escalate beyond initial projections, the government bears that burden. There's also a risk that the award fee criteria might not perfectly align with all desired outcomes or could inadvertently encourage focus on easily achievable metrics over more critical, complex ones. Effective oversight is crucial to manage these risks, ensuring that costs remain reasonable and that the award fee truly reflects exceptional performance aligned with mission success.
How has NASA's spending on Mars exploration evolved over the past decade, and where does MAVEN fit in?
NASA's spending on Mars exploration has been relatively consistent, with significant investments in robotic missions aimed at understanding the planet's habitability, geology, and atmosphere. The MAVEN (Mars Atmosphere and Volatile EvolutioN) mission, launched in 2013, fits into this strategy by focusing specifically on the Martian upper atmosphere. Its development and operational costs, reflected in this contract, are part of NASA's broader Mars Exploration Program, which also includes rovers (like Curiosity and Perseverance) and orbiters. Annual budgets for Mars exploration fluctuate based on mission cycles, launch windows, and the specific objectives of new initiatives, but MAVEN represents a key component of NASA's ongoing scientific inquiry into the Red Planet.
What are the implications of the long contract duration (2009-2026) for project management and budget predictability?
The extended duration of this contract, spanning from 2009 to 2026, highlights the long-term commitment required for complex space missions. For project management, it allows for sustained focus, iterative development, and adaptation to evolving scientific understanding or technical challenges. However, it also necessitates robust long-term planning and resource allocation from NASA. Budget predictability can be a challenge; while the total contract value provides an estimate, the 'Cost Plus' nature means actual expenditures can vary. Managing such a long-term contract requires continuous oversight, regular budget reviews, and proactive risk management to mitigate potential cost overruns and ensure the project stays on track within its overall funding envelope.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNH06ZDA002O
Offers Received: 50
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $302,353,024
Exercised Options: $302,353,024
Current Obligation: $300,982,194
Actual Outlays: $43,507,914
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-04-02
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-30
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